Credit repair

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Your credit repair services

Bankruptcy or consumer proposal discharge

What is credit repair?

The main goal of credit repair is to make sure that your credit reports do not contain errors and are truly representative of your use of credit tools.

The basics of credit

There are no great strategies to rebuild your credit or restore your credit report. It’s a matter of time and trust!

However, it is possible to list some important factors to take into account whenever you want to increase your credit rating:

  • Establish a budget and plan your monthly expenses.
  • Watch out for fraud and dispute any errors.
  • Eliminate small balances on several different credit accounts.
  • Manage your debts by making recurring payments.
  • Increase your credit limit.
  • Pay your card balances in full each time.

Bankruptcy and consumer proposal

When a person files for bankruptcy or files a consumer proposal, the Office of the Superintendent of Bankruptcy (OSB) notifies Equifax and TransUnion (the two Canadian firms doing information management) and a note is then placed on the credit file.

Bankruptcy information is deleted from the credit report 6 years after the bankruptcy discharge date. However, it is possible to rebuild your credit upon discharge from bankruptcy.

The information on the consumer proposal is deleted from the credit file 3 years after the end of the proposal, but it is possible to start rebuilding your credit from the end of the consumer proposal.

How to recover from bankruptcy?

If you are not released from your bankruptcy or your consumer proposal, no financial institution will accept to give you credit.

It is also impossible to file for a second bankruptcy if you have not been discharged from a first bankruptcy.

After discharge, a mention of bankruptcy or a consumer proposal on the credit file is equivalent to a “yellow light” warning potential creditors that you have already experienced a credit problem.

As soon as you have obtained your bankruptcy or consumer proposal discharge, several credit companies will agree to give you access to a credit card under certain conditions.

It is therefore possible to rebuild your credit and no longer experience problems long before the information is erased, often in less than 12 months after release.

How to rebuild credit fast?

Here are some tips for rebuilding your credit within 1 to 12 months of being discharged from bankruptcy or from a consumer proposal:

  • Make sure all balances on your credit bureau have been cleared by your creditors. If certain balances remain, have the information corrected directly with the credit bureaus using your bankruptcy or consumer proposal discharge documents.
  • Set up automatic payments that stay within your budget. This way, you will build a positive payment history.
  • Open an account at an institution that was not among your creditors. Accumulate a certain amount that your institution could withdraw directly monthly.
  • Avoid writing uncovered cheques with your new financial institution altogether.
  • Offer your institution a collateral of $500 to $1,000 to get a credit card with a smaller limit. Many institutions accept this kind of offer!
  • Pay off your credit card balance in full every month, not just the minimum payment.

We are here to help!

You want to get a car loan despite your bad credit?

At Crédit 100 Limites, we help you borrow for the purchase of a vehicle at very advantageous rates depending on your financial situation!

Let us help you!